During the last decade, the financial market in India has witnessed a significant shift towards increasing use of short-term, revolving lines of credit like credit cards. Studies show that credit card transactions crossed Rs. 47,900 Crore during the very first quarter of 2018’s fiscal year. It shows a tendency of an increasing number of people to pay for goods and services with their credit cards instead of hard cash.
There are several reasons why credit cards have become so popular among consumers across the nation. This type of short-term, unsecured financing option allows a borrower to utilise a pre-determined line of credit instead of his or her savings. A cardholder can make large scale purchases according to their requirement and pay the due amount within the due date.
By making your RBL Credit Card online payment within its due date is one of the most important aspects of using this form of alternative currency. A history of timely repayments can help improve a cardholder’s credit score, which in turn increases his or her creditworthiness and makes it easier to avail any form of advance in future. Customers of Bajaj Finserv RBL Bank SuperCard must also exercise the same.
Importance of timely repayments –
There are several reasons why cardholders should repay their credit card dues in time. One of the most beneficial reasons is to improve their CIBIL score.
- It creates a good credit history –
An individual’s credit history and rating depends on how he/she manages the debts. Timely repayment of credit card bills proves that a cardholder is financially responsible and represents less risk to lending organisations. Credit bureaus like CIBIL will increase one’s credit score as his/her creditworthiness increases.
Cardholders can quickly build a positive credit history and good credit rating with responsible use of their credit card. Because bodies like CIBIL put the highest weightage – 30%, on an individual’s past financial record. A history of timely repayments can quickly improve their CIBIL score and increase creditworthiness by a significant margin.
Thanks to online payment systems like RBL Credit Card online payment, it has also become significantly easier and less time-consuming to transfer the money to the credit account.
Bajaj Finserv RBL Bank SuperCard is one of the ideal credit cards available in the Indian financial market. It offers benefits like zero interest emergency personal loans, interest-free cash withdrawal, etc.
Bajaj Finserv also provides pre-approved offers on credit cards, unsecured advances like personal loans, business loans, secured advances like home loans, and a host of other financial products. It helps you save time by simplifying the process of applying for credit. You only have to share some essential details online to check your pre-approved offer.
- It helps you avoid interest and late payment fees
When you perform RBL Credit Card online payment in due time, you can avoid paying interest on your outstanding dues. Additionally, you also eliminate the need to pay late payment fees.
Make sure not to pay the minimum amount due; doing so will carry forward your total payable amount to the next month and also increase your interest burden.
- It helps increase maximum credit limit –
Credit card companies usually review their customer’s profile once every year to determine whether they are eligible for added benefits, like higher maximum credit limit or not. A timely repayment history shows that a particular cardholder maintains a good balance between his or her obligations and income, and is likely to have a higher repayment capability. Lenders will be more likely to increase the maximum limit on their credit cards automatically in such situations.
However, different financial institutions have different set of rules regarding automatic limit extension. One can reach their credit card customer care to know more about these details.
Credit cards are an ideal financial tool to improve one’s credit rating and build an excellent financial history. The above-mentioned reasons show why paying a card’s due amount in time significantly improves a cardholder’s creditworthiness.